Arctic Cat Revises Fiscal 2005 Second-Quarter Expectations; Full-Year Outlook Remains Unchanged

THIEF RIVER FALLS, Minn.--Oct. 5, 2004--Arctic Cat Inc. :

-- Conference call scheduled at 5 p.m. ET today

-- Transportation issue caused one-week delay in planned snowmobile shipments

Arctic Cat Inc. today announced that it is lowering its guidance for the fiscal 2005 second quarter ended September 30, 2004, due to a logistical delay in snowmobile shipments. The company now expects to report net earnings in the range of $0.90 to $0.94 per diluted share on net sales of $237 million to $241 million. Previously, Arctic Cat estimated second-quarter net earnings of between $0.99 to $1.02 per diluted share on net sales of between $245 million to $255 million.

"A transportation delay in shipping approximately 1,000 to 1,500 units to dealers in the final days of the quarter, most of which were our popular new M7 mountain snowmobiles, will cause second-quarter sales and earnings to be lower than originally estimated," said Christopher A. Twomey, chairman and chief executive officer. "This is a one-week hiccup. All of the delayed snowmobile products will be shipped this week."

Commenting further, Twomey said: "The quarter's results would have been well within our previous guidance had the ordered and produced snowmobiles been able to be transported to our dealers on time. For the year, we remain on plan to deliver record sales."

Arctic Cat's expectations for full-year sales and earnings remain unchanged. For the fiscal year ending March 31, 2005, the company continues to anticipate that net sales will grow 4 to 8 percent and be in the range of $676 million to $700 million. Full-year diluted earnings per share are estimated to grow 4 to 8 percent and be in the range of $1.46 to $1.51.

Arctic Cat is scheduled to announce its 2005 second-quarter results and outlook on October 21, 2004, before the market opens.

Conference Call

Arctic Cat will host a conference call at 5 p.m. ET today. To listen to the live Webcast or replay of this call via the Internet, go to the corporate portion of the company's Web site at www.arcticcat.com, and click on the conference call icon. A telephone replay also will be available from approximately 7 p.m. ET today until 7 p.m. ET on Tuesday, October 12. To access the telephone replay, dial (800) 405-2236, conference ID #11010993.

The company is also presenting at the RBC Capital Markets Consumer Conference on October 6, 2004, at 8:30 a.m. ET. A live audio Webcast of the presentation may be accessed on the company's Web site, as noted above. The archived Webcast will be available through November 5, 2004.

About Arctic Cat

Arctic Cat Inc. designs, engineers, manufactures and markets all-terrain vehicles (ATVs) and snowmobiles under the Arctic Cat(R) brand name, as well as related parts, garments and accessories. Its common stock is traded on the Nasdaq National Market under the ticker symbol "ACAT." More information about Arctic Cat and its products is available on the Internet at www.arcticcat.com.

Forward-Looking Statements

The Private Securities Litigation Reform Act of 1995 provides a safe harbor for certain forward-looking statements. The Company's Annual Report, as well as the Report on Form 10-K and future filings with the Securities and Exchange Commission, the Company's press releases and oral statements made with the approval of an authorized executive officer, contain forward-looking statements that reflect the Company's current views with respect to future events and financial performance. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or those anticipated. The words "aim," "believe," "expect," "anticipate," "intend," "estimate" and other expressions that indicate future events and trends identify forward-looking statements. Actual future results and trends may differ materially from historical results or those anticipated depending on a variety of factors, including, but not limited to: product mix and volume; competitive pressure on sales and pricing; increase in material or production cost which cannot be recouped in product pricing; changes in the sourcing of engines from Suzuki; warranty expenses; foreign currency exchange rate fluctuations; product liability claims and other legal proceedings in excess of insured amounts; environmental and product safety regulatory activity; effects of the weather; overall economic conditions; and consumer demand and confidence.